Grading Bond
What is a grading permit bond?
A grading bond is a type of permit surety bond generally required when a construction project involves moving an amount of earth that exceeds city or county limits.
Grading bonds may also be known by other names, such as:
- Grading Permit Surety Bond
- Excavation Contractor Bond
- Soil Erosion or Sediment Control Bond
- Clearing and Earthwork Contractor Bond
How much does a grading permit bond cost?
Rates for a grading permit bond start at 0.5% of the bond amount, although the final premium depends on the bond amount, project details, and the requirements of the city or county requiring the bond. Underwriting criteria vary by obligee and bond amount, and additional financial information may be required during the application process. Municipalities may base the bond amount on the number of cubic yards of soil excavated or filled, as well as the cost of drainage systems or other protective improvements required for the project.
Why do I need a grading permit bond?
A grading bond guarantees that all grading work will be completed according to approved plans, applicable laws, and the terms outlined in the grading permit. These bonds are typically required at the local government level, though the specific requirements can vary depending on the jurisdiction.
In many areas, requirements are based on the amount of soil or earth being moved, with different thresholds depending on the project size or location. To determine whether a grading bond is required for your project, check with your city or county’s public works or permitting department.
How can I get a grading bond?
To obtain a grading permit bond, you may be asked to provide:
- A copy of the permit application
- An engineering estimate for the project
- The required bond form (if applicable)
Important: The bond principal (applicant) must match the name on the permit application. For example, if the permit is issued to a property owner, trust, or LLC, the bond must be issued in that same legal name. Some jurisdictions, such as the City of Los Angeles, may also require additional documents, including an acknowledgment form.
Call us at 855-575-1063 or complete our contact form to get your grading permit bond.
Does a grading/excavation permit bond expire?
The permit bond expires on the specified expiration date, typically one year from the date of issuance. If the project takes more than a year, you will need to purchase another bond.
What else should I know about grading bonds?
Expect to provide site and grading plans for the project to the local municipalities where the project is based. Check with the individual entities before purchasing a grading/excavation permit bond to see what they require.